3 Ways Advisors Can Support Business Owner Clients Now

What You Need to Know

Many owners over 60 have no idea about how to retire.
One problem: What would happen to their company?
Another problem: The best workers are leaving for employers with retirement plans.

Growing up, I watched my father, a former Mexican migrant worker, work hard to create a thriving business from nothing.

This experience left me with an appreciation for the many hats hard-working business owners must wear to address the variety of challenges they face.

I also learned that business owners can’t do it alone.

While they are likely skilled at running the business they built, they often need assistance from experts who can bring specialized solutions to address opportunities that go beyond day-to-day operations.

Today, many American business owners have concerns about the state of the American economy according to a new survey from the Nationwide Retirement Institute, which sheds light on what’s keeping them up at night — and opportunities for financial professionals to step in with specialized solutions to address some of their biggest challenges.

The majority of small business owners (72%) and mid-market business owners (51%) rate the current condition of the U.S. economy overall as ‘poor’ or ‘fair.’ It’s not surprising that inflation is their top concern.

As a result, many feel like they are struggling to make financial decisions impacting their business and personal financial security.

One thing is clear — American business owners need help from financial professionals.

The good news is many are interested in talking to one.

While less than half (45%) of the business owners we surveyed say they currently work with an advisor, about two-thirds (65%) said they either have met with one in the past six months or plan to do so in the next six months.

Through our survey, these business owners highlighted a number of topics they’d like to discuss with an advisor.

Three stood out for me as prime opportunities.

Here are some ways you can meet your business owner clients where they are with solutions to address some of their biggest challenges.

Enhancing Their Personal Retirement Plan

This year, more Americans will turn 65 than at any point in history, and many of them are business owners who should be starting to think about the next phase of their career journey.

A surprising number of business owners told us that in the past year they have decided to push their retirement date back.

Reasons include concern they haven’t saved enough to provide the income they will need in retirement or that they have had to reduce the amount they save due to current economic conditions.

This includes about a third (36%) of business owners in the 60 to 65 age range, with about one in five telling us they aren’t even thinking about retirement right now.

That’s why I recommend you start your conversations with business clients by focusing on their personal retirement plans.

For many, it all boils down to the risk many retirees face today: outliving their income.

Most of these individuals have spent their lives focused on building their businesses and, like many investors, accumulating assets.

That leaves a notable gap when it comes to planning for decumulation for an uncertain amount of time in retirement.

Advisors can step in to help build a strategy that will boost their confidence, including a plan for claiming Social Security and identifying other sources of guaranteed income, which could include annuities or other income strategies.

Succession Planning

It’s also notable that many business owners have failed to develop a succession plan, according to our survey, which may contribute to their lack of personal retirement confidence.

After all, if they walk away without a plan, that could have a tremendous impact on the legacy of the business they dedicated their life to building and the people who depend upon them for employment.